Key Points
- The Mayer Multiple indicator suggests a significant upward potential for Bitcoin, possibly reaching $168,000.
- Korean investors show increased buying activity, supporting Bitcoin’s price action.
Bitcoin was trading at $95,646 at press time, a 7.89% decrease from its high last week. Despite a modest daily decline of 0.52%, the easing of selling pressure may pave the way for further gains.
The pullback to the $90,000 range aligns with Bitcoin’s overall bullish trajectory as the cryptocurrency eyes higher levels.
Bitcoin’s Bullish Trajectory
Analyst Ali Charts suggests that Bitcoin remains on a bullish trajectory despite its recent price decline. The current price correction is seen as part of a larger market structure that could propel Bitcoin to the $168,000 region.
The Mayer Multiple, an indicator available on Glassnode, calculates potential market tops and bottoms by dividing Bitcoin’s current price by its 200-day moving average. The market’s potential top is indicated at an MM of 2.4, corresponding to approximately $168,494, and the bottom is defined at 0.8 MM, or $56,141.
The Mayer Multiple, currently at 1.3, reflects a fair valuation for Bitcoin but does not directly dictate market direction. However, it suggests that Bitcoin could rally to $168,494, a level that would place it in overvalued territory.
Role of Institutions and Large Investors
Institutional and large-scale investors are playing a major role in keeping Bitcoin’s price range intact. Data shows a surge in interest from these entities as Bitcoin regains popularity.
This group has significantly increased its share of Bitcoin’s Known Entities Cap Table, rising from 14% last year to 31% at the time of reporting. If this buying trend continues, it could positively impact Bitcoin’s trajectory by further cementing its position in mainstream financial markets.
Analysis of U.S., Korean, and traditional investors reveals that bullish sentiment persists, indicating continued confidence in Bitcoin’s potential.
Korean investors have shown a major surge in Bitcoin buying activity, with a spike last seen in August. The current reading of the Korean Premium Index has climbed to 5.26, up from a negative 0.37 on December 15. This level of heightened buying activity indicates ongoing accumulation, which could soon reflect in Bitcoin’s price.
In contrast, U.S. investors have shown reduced interest, as indicated by a decline in the Coinbase Premium Index. The index remains in negative territory at -0.1035, a sign of a slowdown in buying activity.
Similarly, the Fund Market Premium Index, which tracks institutional Bitcoin buying and selling, mirrors this bearish sentiment. It currently stands at -0.759, reinforcing the decline in institutional demand.
If U.S. and institutional investors return to buying, their participation—combined with the bullish momentum from Korean investors—could push Bitcoin’s price upward to the $100,000 region.
